Veg oil imports up 24% on low domestic supply

Decline in availability from domestic sources on lower seed availability and negative crushing parity trigger the rise

India’s vegetable oil imports jumped 24 per cent in oil year 2014-15 (October to  November), following a sharp decline in availability from domestic sources on lower seed availability and negative crushing parity.

Data compiled by the apex industry body, Solvent Extractors’ Association (SEA) showed India’s import at 14.61 million tonnes in the year ended October compared to 11.82 million tonnes in the past year.

Oil year 2014-15, has set a new record for highest import of palm products and soft oils like soyabean, sunflower and rapeseed (canola) oils. In fact, import of vegetable oils during October 2015 is reported at 16.71 million tonnes compared to 12.46 million tonnes for October 2014, up by 34 per cent. Import of edible oil in October, 2015, is the highest import in any single month since allowed in open general licence (OGL) in 1994.

Similarly import of palm products during October 2015 is the highest in any single month.

Import of edible oil has sharply increased in last few years due to stagnant oilseed production and rising oil demand in the country. India’s dependence on imported oil has increased to 70 per cent of its requirements.